House Bill No. 379, introduced by Representative Wright, amends existing property insurance laws in Louisiana to establish conditions under which mandatory binding arbitration can be required. The bill modifies R.S. 22:868 by allowing for an exception to the prohibition against certain arbitration clauses in insurance contracts, specifically when the arbitration requirements are included in a separate endorsement attached to the policy. The bill outlines several stipulations that must be met for arbitration to be mandatory, including the requirement for an actuarially sound premium discount, a signed acceptance form from the policyholder, and the insurer's compliance with mediation provisions before arbitration can commence.

Additionally, the bill mandates that arbitration must occur within the state at a location corresponding to the policyholder's premises and that the arbitrator must be a licensed attorney in Louisiana. The arbitrator is granted the authority to issue judgments that may include penalties and attorney fees. The arbitration process will be governed by the Louisiana Binding Arbitration Law, and the commissioner of insurance is empowered to create rules and regulations to enforce these provisions. Overall, the bill aims to provide a structured framework for arbitration in property insurance disputes while ensuring that policyholders are informed of their rights.

Statutes affected:
HB379 Original: 22:868(A)
HB379 Engrossed: 22:868(A)